Iroquois Gas Transmission System, L.P.

FIRST REVISED VOLUME NO. 1

Effective Date: 11/16/1997, Docket: RP98- 18-002, Status: Effective

2nd Sub. Second Revised Sheet No. 122 2nd Sub. Second Revised Sheet No. 122 : Effective

Superseding: First Revised Sheet No. 122

32.2 CAPACITY ALLOCATION AND CURTAILMENT

In determining the best bid for right of first

refusal and in allocating capacity, Transporter will consider

only revenues that would be generated by a demand or

reservation rate or other form of revenue guarantee, such as a

usage charge associated with a minimum volume commitment. In

the event that the revenue generated pursuant to the

Negotiated Rate(s) or Negotiated Rate Formula would exceed the

revenue generated at the Recourse Rate, for the purposes of

capacity allocation or curtailment, the Shipper paying such

Negotiated Rate or a rate under a Negotiated Rate Formula

shall be treated as if the rate equals the Recourse Rate. Any

Shipper, existing or new, paying the Recourse Rate has the

same right to capacity as a Shipper willing to pay a higher

Negotiated Rate or rate under a Negotiated Rate Formula. If

the Negotiated Rate or the rate under a Negotiated Rate

Formula is higher than the corresponding Recourse Rate, the

Recourse Rate rather than the Negotiated Rate will be used as

the price cap for the Right of First Refusal pursuant to

Section 29 of these General Terms and Conditions. Where the

Negotiated Rate or a rate under a Negotiated Rate Formula

results in revenue that is greater than the Recourse Rate

during certain portions of the relevant evaluation period, but

less than the revenue at the Recourse Rate during other

portions of the relevant evaluation period (but the revenue

pursuant to the Negotiated Rate or rate under a Negotiated

Rate Formula equals or exceeds that which would be generated

at the Recourse Rate for the entire evaluation period), the

value of bids, requests and rates at a Negotiated Rate or a

rate under a Negotiated Rate Formula shall be evaluated as

though the Recourse Rate applied under such bid, request or

rate for the entire evaluation period. Where the Negotiated

Rate or rate under the Negotiated Rate Formula results in

revenue that is less than the revenue at the Recourse Rate

over the relevant evaluation period, the value of the bids,

requests or rates at the Negotiated Rate or rate under the

Negotiated Rate Formula shall be evaluated based on such lower

revenue and shall be afforded a correspondingly lower priority

than bids, requests or rates at the Recourse Rate.